Canadian Family Law Offices | Estate Planning
By Kathy Kerr on March 16th, 2023
Does the promise of a hefty inheritance tomorrow make kids unmotivated and spoiled today? Some parents want to divert money because they are afraid that a big inheritance will taint their children…
Some wealthy parents are tempted to leave the bulk of their estate to charity, to ensure their children develop their own talents and skills. But advisors recommend careful consideration before taking that route.
Martha Simmons urges families to be upfront with the next generation about what’s in the will, especially if the bulk of the estate is going to go to charity or there is some uneven distribution of the estate among the heirs. “If you’re [restricting your children’s inheritance] because you want children to make their lives on their own and feel the success of accomplishments on their own, then you want teeth in that lesson. If they find out on your death that you’ve done that, you’ve lost the education opportunity.”
Expert urges wealthy families to reassess their estates every five years as their opinions change and they see their children develop.
You hear a lot about these tech entrepreneurs who are adamant about not leaving their kids too much. They worked hard to make the money and they don’t want their kids to be spoiled. I think some of that is fear of wealth, that may not be fully well-formed or founded. Some of the work that we do with families is to unpack that and help them understand that just having wealth doesn’t mean that your kids will be lazy or entitled.
Martha Simmons, Chief Operating Officer, Forthlane Partners
